Feeds

Warner faces 14 download overcharging cases

Stock exchange filing

Boost IT visibility and business value

Documents filed with the Securities and Exchange Commission on Friday reveal that Warner Music Group is facing 14 separate legal actions relating to the pricing of downloads.

In December last year and February this year the company received requests for information from New York Attorney General Eliot Spitzer. In late February it received a Civil Investigative Demand as to whether pricing of downloads breaks the Sherman Act.

The filing says Warner has been named in 14 cases - eight in California, five in New York, and one in Washington DC. It expects the cases to be consolidated into one. Although, thanks to iTunes, the US price of 99 cents per track has become an "industry standard", several competition authorities have questioned how this price was arrived at.

The company warns that any legal action, "regardless of the merits of the claim, could be costly and divert the time and resources of management".

The filing says the recorded music industry has had an unstable five years. It says: "The industry-wide decline can be attributed primarily to digital piracy."

Warner is also facing two anti-trust cases filed by independent music labels over its radio promotion behaviour - the company settled an investigation into radio promotion by Attorney General Spitzer in November and paid $5m to charity.

The filing also warned that Warner Music's outside auditors have identified a "material weakness" in the way the company works out domestic royalty payments. The company has started work on integrating different systems in use, but warns that there remains a "remote likelihood that a material misstatement...will not be prevented or detected".

Read the whole filing here.

It also emerged over the weekend that EMI is likely to increase its offer for Warner to $4.4bn and offer a higher percentage of cash. Warner last week rejected EMI's offer of $4.2bn for the company.

More from the Mail on Sunday here.®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.